The Division of Justice is investigating live performance promoters Reside Nation and AEG in a legal probe concerning their responses to refunds for pandemic-era live performance cancellations, Reside Nation confirmed Thursday in an announcement, denying any wrongdoing.
Bloomberg first broke the news of the investigation, reporting that it’s linked to an initiative Reside Nation, AEG and the foremost Hollywood reserving companies had announced through the early days of the pandemic in 2020. As Bloomberg reported, the DOJ began investigating through the Biden period, however that the efforts elevated through the Trump administration. It’s unclear if the investigation will lead to any formal expenses filed.
“It isn’t unlawful for artist brokers, promoters and ticketing firms to work collectively to unravel the unprecedented challenges of a worldwide pandemic,” Dan Wall, Reside Nation’s evp of company and regulatory affairs, stated in an announcement to The Hollywood Reporter. “Whereas Reside Nation contributed to this business effort in good religion, we set our personal distinctive insurance policies and refund phrases to help followers and artists. We didn’t collude with AEG or anybody else. We’re pleased with our management throughout these making an attempt instances, and if any expenses end result from this investigation, we are going to defend them vigorously.”
Reps for the DOJ and AEG declined or didn’t reply to requests for remark.
A supply conversant in the matter instructed THR that the DOJ was taking a look at COVID insurance policies whereas the division was wanting into its civil monopoly lawsuit towards the corporate, however that it wasn’t an space of focus because the DOJ continued the constructing the civil case that will be filed in Might of 2024.
As Bloomberg notes, there’s a five-year statute of limitations on legal expenses, that means the division has to resolve quickly on whether or not it would carry legal expenses ahead.
The information of the probe comes as Reside Nation continues to face the DOJ’s monopoly go well with. The Justice Division referred to as for a breakup of Reside Nation’s eponymous live performance promotion arm and the ticketing large Ticketmaster final 12 months, claiming the corporate has leveraged its energy in concert events and ticketing to stifle competitors. Reside Nation has persistently denied the claims.
Because the new administration has taken over, advocates and lawmakers have referred to as on the DOJ to maintain prioritizing the go well with, with the American Financial Liberties Undertaking writing that “previous makes an attempt to chop offers with this large have been unsuccessful in stopping abuses of impartial venues, artists and followers. Nothing wanting a breakup will do.”
To date, essentially the most vital dwell music laws within the Trump period has been the president’s govt order signed on the finish of March to focus on ticket scalping.
As a part of that order, the DOJ and Federal Commerce Fee introduced a public inquiry into the dwell music enterprise final week to hunt potential treatments to points within the business impacting shoppers.